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A game involves two firms: firm 1 and firm 2. The payoffs matrix of the game is as follows: Firm 1 A B с D 50,50 150,100
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A game involves two firms: firm 1 and firm 2. The payoffs matrix of the game is as follows: Firm 1 A B с D 50,50 150,100
A game involves two firms: firm 1 and firm 2. The payoffs matrix of the game is as follows: Firm 1 A B с D 50,50 150,100 250,150 Firm 2 E 100,150 200,200 300,250 F 150,250 250;300 260;350 1. If firm 1 plays strategy B, what is the best action for firm 2? Explain! 2. If firm 2 plays strategy F, what is the best action for firm 1? Explain! 3. Is there any dominant strategy for each firm? Explain. 4. Is there a secure strategy for each firm? Explain. 5. In a one-shot game, what is the Nash Equilibrium of the game? Explain your answer!